12.16.2014

Russian media across the country from St. Petersburg to Siberia reported exchange points running out of foreign currency and jacking up rates. Sberbank , Russia’s state savings bank, and Alfa Bank, Russia’s largest private lender, said they were experiencing a rush for dollars and euros.
“The demand is enormous. People are bringing piles, huge piles of cash. It’s madness,” said Kamila Asmalova, a manager at a downtown branch of Sberbank. The branch ran out of foreign currency by 2 p.m., she said.
Tatiana Malkova, a receptionist at a Raiffeisen Bank branch in central Moscow, said demand rose dramatically Monday evening as the ruble plunged. The bank ran out of dollars and euros in its ATMs in the morning, but expects a delivery on Wednesday, she said.
Midsize Moscow lender Lanta Bank said its foreign counterpart would be unable to send foreign currency Wednesday as aircrafts that transport cash are full.

1 comment:

In short, Putin is like a Augusto Pinochet or a Juan Perón … but with much more steely resolve, a massive military, and nuclear bombs.

But even with Putin's extremely visible and frightening track record before us, it's clear the Obama administration and even the investment community is still not prepared for the extent of the damage the Russian leader can unleash on his own people, on his neighbors, and on the U.S. financial markets.

There is nothing more dangerous than a wounded animal. Vladimir Putin is wounded — and he's not known for holding back.